Forward Industries (FWDI), a Nasdaq-listed and prominent Solana treasury company, has been heavily impacted by the sharp decline in the cryptocurrency market.
The approximately 7 million Solana (SOL) that the company holds on its balance sheet exceeds the combined total of its next three competitors.
However, the decline in prices has put significant pressure on the company’s balance sheet. While Forward Industries’ average cost for SOL purchases is around $232, the current price of SOL being approximately $85 reduces the company’s asset value to around $600 million. This translates to an unrealized loss of approximately $1 billion.
The company’s shares have shown a similar performance. FWDI shares, which peaked at around $40 last year, have now fallen to around $5.
Despite this overall picture, company management argues that Forward Industries is in an advantageous position under current market conditions. In an interview, the company’s Chief Investment Officer (CIO), Ryan Navi, claimed that the company carries no corporate debt and has a completely unleveraged structure.
Navi stated, “A balance sheet without scale and leverage is a real advantage in this market. We can play offensively while others stay on the defensive.”
Navi stated that the company deliberately avoids debt and leverage, which gives them the flexibility to use leverage responsibly when needed to seize opportunities.
*This is not investment advice.
